IWO Trading Floor

Become a Great Options Trader

Full Time Profits, August 31st, 2020 – NKLA, MA, WDAY

By

We’re starting to see evidence of parabolic action in the markets. Large cap tech is seeing a “convexity squeeze,” where enough call buyers are skewing the market higher as the market makers are forced to buy the stock as the stock rallies.

This week could come down to AAPL. The stock has rallied hard into a split and if it sees aggressive profit taking, then a “rug pull” in tech could drag the rest of the market down. Or we could just continue grinding higher… which would be a lot less fun.

Trade #1: NKLA

This SPAC has started to turn, and I think it can see a push to 50 and potentially higher.

Trade Setup

Expected Price: 41.35

Sell to Open NKLA 18Sep20 36/34 Put Spread

Tier 1: Enter at 0.5, Exit at 0.24

Tier 2: Enter at 0.7, Exit at 0.44

Tier 3: Enter at 0.9, Exit at 0.59

Stop Out If Close Under 35.89

Trade #2: MA

Mastercard is seeing range expansion after a 12-day rally. This signals parabolic action, and I want to start playing for a fade if the stock sees one more push higher.

Trade Setup

Expected Price: 370.33

Sell to Open MA 18Sep20 395/400 Call Spread

Tier 1: Enter at 0.7, Exit at -0.04

Tier 2: Enter at 0.98, Exit at 0.17

Tier 3: Enter at 1.26, Exit at 0.21

Stop Out If Close Over 396.11

Trade #3: WDAY

WDAY had a monster move on earnings, and the earnings… well, they weren’t terrible. I think we’ll see some profit taking first, and I want to target a half gap fill to buy the dip. Options are a little less liquid on this one, so we will take some extra “wiggle room” by going further out in time on the spread sales.

Trade Setup

Expected Price: 228.31

Sell to Open WDAY 16Oct20 200/195 Put Spread

Tier 1: Enter at 0.95, Exit at 0.26

Tier 2: Enter at 1.33, Exit at 0.59

Tier 3: Enter at 1.71, Exit at 0.78

Stop Out If Close Under 199.89

 

Disclaimer

U.S. GOVERNMENT REQUIRED DISCLAIMER – COMMODITY FUTURES TRADING COMMISSION. FUTURES AND OPTIONS TRADING HAS LARGE POTENTIAL REWARDS, BUT ALSO LARGE POTENTIAL RISK. YOU MUST BE AWARE OF THE RISKS AND BE WILLING TO ACCEPT THEM IN ORDER TO INVEST IN THE FUTURES AND OPTIONS MARKETS. DON’T TRADE WITH MONEY YOU CAN’T AFFORD TO LOSE. THIS WEBSITE IS NEITHER A SOLICITATION NOR AN OFFER TO BUY/SELL FUTURES OR OPTIONS. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED ON THIS WEBSITE. THE PAST PERFORMANCE OF ANY TRADING SYSTEM OR METHODOLOGY IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN